The Edgewing joint venture, including BAE Systems, Leonardo, and Japan Aircraft Industrial Enhancement Co Ltd, won a £4.6 billion contract. This funding advances the design and testing of the Global Combat Air Programme (GCAP). The aircraft is slated for service starting in 2035.
The contract belongs to a larger £8.6 billion UK government investment. This funding will be deployed over the next four years. The agreement secures thousands of skilled jobs at BAE Systems' Lancashire sites.
BAE Systems plc (LON:BA) shares climbed 1.64% following the news. The stock reached a price of 2,014p. The FTSE 100 index recorded a slight decline during the same session.